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Golden Matrix Group Inc Reports Record Q1 Revenues and Positive Net Income

GuruFocus Research
·4-min read

  • Revenue: Achieved record quarterly revenues of $11.84 million, a 10% increase year-over-year.

  • Net Income: Reported Q1 net income of $74,505, a significant improvement from a loss of $(443,521) in the same quarter last year.

  • Adjusted EBITDA: Posted $1.19 million in adjusted EBITDA, highlighting operational efficiency.

  • Cash Flow: Marked the 9th consecutive quarter of positive cash flow from operations.

  • Assets and Equity: Total assets reached $37.1 million with shareholders' equity at $32.15 million.

  • User Growth: Current unique casino operations and registered user numbers on B2B platforms are 808 and 8.3 million, respectively.

  • Acquisition Update: Progressing towards the MeridianBet Group acquisition with a special meeting set for March 19, 2024.

On March 14, 2024, Golden Matrix Group Inc (NASDAQ:GMGI) released its 8-K filing, announcing a strong start to the fiscal year with record revenues and a return to profitability in the first quarter. The company, a leading developer and licensor of online gaming platforms, systems, and content, reported a 10% increase in revenues compared to the same period last year, reaching $11.84 million.

Golden Matrix Group Inc Reports Record Q1 Revenues and Positive Net Income
Golden Matrix Group Inc Reports Record Q1 Revenues and Positive Net Income

Golden Matrix Group Inc operates in the interactive media industry, with a focus on both B2B and B2C segments. The company's B2C segment, which includes RKings Competitions and the regulated casino MEXPLAY in Mexico, generated the majority of the revenue, accounting for 61% of the total. This segment's success is critical as it directly impacts the company's market presence and revenue growth.

Financial Performance and Strategic Developments

The company's financial achievements, including a net income of $74,505 and comprehensive income of $272,396, are significant turnarounds from the losses reported in the previous year. This profitability reflects GMGI's ability to optimize its operations and adapt to market conditions. The positive adjusted EBITDA of $1.19 million further demonstrates the company's operational efficiency and its potential for sustainable growth.

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Golden Matrix's strong balance sheet, with $17.29 million in cash and $37.1 million in total assets, positions the company well for future investments and strategic acquisitions. The anticipated acquisition of MeridianBet Group is a key strategic move that could enhance GMGI's product offerings and market reach, potentially leading to increased top-line growth and profitability.

Challenges and Industry Outlook

Despite the positive results, the company faces challenges such as the need for continuous innovation and the management of regulatory changes within the gaming industry. The CEO of Golden Matrix, Brian Goodman, expressed confidence in the company's position and its growth prospects, particularly in light of the pending MeridianBet acquisition.

"We are exceptionally pleased with the companys performance in Q1 to kick-off the new fiscal year," said Golden Matrix CEO Brian Goodman. "We achieved positive GAAP earnings and adjusted EBITDA of almost $1.2 million, we set multiple records, delivering our highest ever quarterly results for Revenue, Total Assets, Shareholder Equity and Cash-on-Hand. The company is well-positioned for continued growth within its B2B and B2C divisions. We continue to make significant progress towards closing the pending Meridian Bet acquisition and look forward to working to boost top-line growth and profitability once these two world class businesses have been combined."

Golden Matrix's performance is a testament to the company's resilience and strategic planning. The company's focus on expanding its user base, as evidenced by the growth in registered users across its platforms, is crucial for driving long-term revenue. Additionally, the company's commitment to maintaining a strong cash position and positive cash flow from operations is essential for navigating the competitive landscape of the interactive media industry.

For more detailed financial information and future updates, investors are encouraged to refer to the company's Form 10-Q for the first fiscal quarter ended January 31, 2024, filed with the SEC.

Golden Matrix Group Inc's solid start to the fiscal year, with record revenues and a return to profitability, positions the company as a noteworthy player in the interactive media space. The strategic focus on both B2B and B2C segments, coupled with the anticipated acquisition of MeridianBet Group, suggests a promising outlook for GMGI's continued growth and market expansion.

Explore the complete 8-K earnings release (here) from Golden Matrix Group Inc for further details.

This article first appeared on GuruFocus.